Key Takeaways
- A 1-for-12 reverse stock split took place on March 23 for FuboTV, becoming effective when markets opened March 24
- Shares dropped 10.6% initially before stabilizing at approximately 3.6% lower by day’s end
- The merged entity sees Disney holding 70% ownership while FuboTV shareholders maintain 30%
- Pro forma revenue for the combined organization reached $6.2 billion across the trailing twelve-month period
- Analyst ratings show Seaport Global upgrading to Buy at $3, while Needham retained Buy but lowered its target to $3.00 from $4.25
FuboTV (FUBO) completed a 1-for-12 reverse stock split Monday, March 23, with the recalibrated pricing going live when trading commenced Tuesday, March 24. Share value declined by as much as 10.6% during the session before partially recovering.
The consolidation plan emerged during FuboTV’s February earnings presentation. The board received authorization to implement a ratio ranging from 1-for-8 through 1-for-12, ultimately selecting the maximum ratio.
Official documentation arrived via a Certificate of Amendment submitted to Delaware’s Secretary of State on Monday. The filing required written approval from Hulu, LLC, a significant stakeholder in the organization, which was obtained.
Reverse consolidations often raise investor concerns. Companies frequently employ this strategy to elevate per-share valuations above minimum exchange requirements and appeal to institutional investors who avoid stocks below specific price points.
FuboTV’s market capitalization settled near $360 million after sustained downward pressure over recent months. This valuation appears modest for an organization connected to a streaming operation producing $6.2 billion in pro forma revenue during the past twelve months, coupled with $78 million in adjusted EBITDA.
Context of the Hulu + Live TV Combination
The reverse consolidation arrives approximately five months following FuboTV’s combination of its sports streaming operations with Disney’s Hulu + Live TV platform. Disney acquired 70% ownership of the unified business, with FuboTV shareholders retaining 30%.
The consolidated entity released its inaugural quarterly performance data in February. Pro forma revenue climbed 6%, surpassing Wall Street projections. Adjusted EBITDA margin expanded from 1.4% to 2.5%.
Subscription figures, conversely, showed weakness. North American subscribers decreased from 6.3 million to 6.2 million. International subscribers contracted from 362,000 to 335,000.
Wall Street Perspectives
Seaport Global Securities elevated FUBO from Neutral to Buy after reviewing the initial post-combination quarter, establishing a $3.00 price objective.
Needham maintained its Buy recommendation while reducing its price objective from $4.25 to $3.00, pointing to the upcoming departure of NBC sports programming in 2026 as a challenge.
FuboTV’s Q1 2026 financial results exceeded expectations. The company delivered EPS of $0.02 compared to the anticipated loss of $0.03—representing a 166.67% outperformance. Revenue totaled $1.68 billion versus the $390.88 million consensus forecast.
This revenue total incorporated Hulu + Live TV results for the initial reporting period. The organization’s financial profile has transformed dramatically compared to twelve months prior.
Current valuation metrics show FUBO trading at approximately 0.2 times sales and roughly 15 times EBITDA based on its proportional 30% interest in the combined operation.
Shares traded at $13.20 during Monday afternoon hours, with the 52-week trading band spanning from $12.18 to $56.64—the upper figure reflecting pre-split adjustment.
Class A common shares commenced split-adjusted trading on the New York Stock Exchange Tuesday morning, March 24, maintaining the “FUBO” ticker symbol while receiving a new CUSIP identifier of 35953D401.
